Interesting article about Oil

wanghong

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Below is an Interesting article I found, which says that.....Do not
* X! s3 X% n& ~expect much from Crude Oil producers and future is not with the
" W1 h- d/ R1 Xcompanies producing Jet fuels but Biofuels. Also no wonder if some of
these oil producer will go bankrupt or out of the business even if
) N4 [( M. F2 `. Q1 o, Ncrude prices improves. This implies also to good names such as Shell,
EXXON, BG, BP, Cheveron ....xyz.. oils

Recently OPEC reduced crude oil production twice over just a few
months. There are three wars going on in Gaza, Iraq and Afghandistan.
A year ago these things would have spiked the price of crude oil by at
least $50.00 per barrel. Today, oil price declined by a record amount.
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There are several reasons the price of oil is decreasing in the face
of so much news. These reasons are:
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1. New oil has been found in Canada, Montana, North & South Dakota and
. X& p2 b2 T' C& j- q& C- L2 bin the ocean near Brazil. Each of these oil fields has more oil than
' Z1 z( m9 E0 JArabia.
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2. New natural gas has been found in Pennsylvania and West Virginia.
, ]( P) p6 N9 [; K0 j" M+ a5 A% oThis is the largest find in North America.


8 @* t( i0 x: ?3. New methods of injecting CO2 and surfactants into oil wells is
being used to double their output.


8 [! u1 Q4 F1 l( a; [$ E4. Production of bio-fuels is beginning to reach critical mass. Bio
fuel is being produced from many plants and algae. The production
2 E2 b# y( S$ Cpotential per acre in some cases is astounding. Many countries are
2 v( b% Z) N2 n( j- f6 Jracing to produce bio fuels.


5. Virtually every restaurant in the US and all food processing plants
! v4 Q. G) m% _( I0 k/ fare now selling their used oil to bio-diesel producers. Every pork,
cattle, turkey and chicken processing plant will soon sell their fat
6 r& ?; f4 W6 l: r+ o- K# w2 q* W+ d$ Ito bio-diesel producers. One pork processing plant in Oklahoma is
producing 30,000 gallons of bio-diesel per day from pork fat.
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& E# C# c  ]* y/ d7 I) K% p- U6. There are 99 nuclear reactors in various stages of planning and
- A$ T# Y" P: D; g/ Q  Aconstruction around the world at this time. Several hundred more are
# u- e) G  C& c9 g6 R8 ]/ K  @8 Uexpected to be built in the future. Much of the energy they produce
! z* f0 j/ @1 h0 z4 Rwill replace oil.
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7. Every company in any form of transportaion business is replacing
older equipment such as trucks, airplanes, train engines, ships, etc.
1 k* W: n3 f3 R; W$ @8 B5 a; iwith new more fuel efficient equipment. Airlines and railway companies
are experiencing 20% to 25% better fuel econony with the new
3 {! `3 u" g. m% d( @  H1 wequipment.

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- L, @. T0 U; Y' Z# J; b8 FAirlines are flying airplanes with bio-fuel. They are finding the bio-
fuel is cleaner and performs better than jet fuel.
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8. Cities and counties throughout the US are selling the rights to
capture methane gas from landfills. This is a huge source of gas
2 {1 r/ z1 x! k$ lavailable at very little cost or risk. The gas is displacing crude
oil.

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8 T, M1 r- B$ j8 A) ~1 ?2 e/ [9. Coal is being transformed into a clean burning liquid fuel. The CO2
produced as a byproduct is sold to oil companies for injection into
! _+ L" m3 W6 b' ooil wells.

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$ p% O! O5 {" V8 n8 @10. Solar, wind and ocean energy is displacing oil as an energy
; j0 i" q2 F* @/ O$ C. Osource. Three new wind turbines are being erected every day in the US.
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2 F7 |# d0 G' a! x  J2 SEach of the above by itself will not make a large difference in the
price of crude oil but the sum of all of them together is world
changing. The important thing is that OPEC no longer has the ability
! ^: @) C( r+ C# h( d; S+ Jto control oil prices.
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With the above scenario, I still believe that there are under
performed OIL companies and probably they are yet to get the justified
value .....
IAE- Ithaca , EPL Energy Partners Ltd, Opti etc ...

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The above articles are from WSJ .............PUBLISHED ON 9TH JAN
2009 ... FYI-Only